Modernization in Progress: Part-Year Operation, Capital Accumulation, and Labor Force Composition in Late Imperial Russia

Our research investigates the process of industrialization by examining why some Imperial Russian firms operated seasonally. We relate a factory’s annual number of working days to labor composition, extent of mechanization,... [ view full abstract ]

Our research investigates the process of industrialization by examining why some Imperial Russian firms operated seasonally. We relate a factory’s annual number of working days to labor composition, extent of mechanization, and geographic setting to understand whether Late Imperial Russia experienced industrialization processes similar to those in Western countries, where such processes are better understood. We use a newly compiled factory database collected from an 1897 factory census to present detailed descriptions of all manufacturing firms operating in 1894 Imperial Russia. We find that factories using more capital were more likely to operate all year, given the high costs of idle machinery. Furthermore, full-year factories with more machines were also more concentrated in cities, similar to what Atack et al. (2001) found in the 19^th century US. Bigger, full-year firms also employed significantly more women and children than the seasonal firms, which was a significant step in the industrialization process. Finally, we examine whether producing greater amounts of highly seasonal crops, such as grains, affected whether manufacturing works operated seasonally, due to labor constraints.